HBA Chief Executive Officer's Blog

CEO Blog: 'Univerally-Mandated' Universal Design?

2010-03-28T17:51:00.001-05:00

Recently I was invited to the state capitol by area legislators to testify before a house committee in Jefferson City about a proposal (House Bill 1737) that would require all new state-supported affordable housing in Missouri to meet Universal Design standards. The legislation is being advanced by well-intentioned advocates for people with disabilities to help meet the special accomodations that often become necessary in their housing options.

For those who may not know, Universal Design and its accompanying market opportunities are one of the few bright points in the residential construction industry right now. Of all the professional designations offered by the National Association of Home Builders, the Certified Aging in Place Specialists, or CAPS – which is based on the principles of Universal Design) is the second fastest growing designation program in the country – just behind the certified green professional designation. Between 2005 and 2009, the number of people taking CAPS designation classes more than doubled. Thousands of builders are ahead of demand on this, even building the future of their businesses around it.

One example of where Universal Design is being incorporated voluntarily with great success is Sustainable Housing Solutions in Springfield. This HBA member specializes in construction of new affordable housing - housing made possible in part by state tax credits. I wanted to know what owner Debra Shantz-Hart though about HB 1737, as it could directly affect her company’s work.

Here is what Debra said: "We think that all projects should be evaluated on a case by case basis----for example, we are doing a version of universal design on our upcoming senior housing project. We have planned and budgeted for it but there were trade-offs in our design in order to bring the project in at affordable level."

Debra reminded me what should be that the most important characteristic of affordable housing: that it remain affordable. While Universal Design serves an important purpose, it also adds a significant cost to construction projects. This bill’s requirements could add anywhere from 5% to 10% to the hard costs of a typical affordable housing construction project.

Of course, the entire reason the state is involved in affordable housing at all is that, in the normal course of the marketplace, there are some of our citizens who simply would not be able to afford to buy or rent a home otherwise. So, the state offers incentives and tax credits to get housing built that these citizens can, with help, afford to live in.

Well-intentioned requirements like HBA 1737 one jeopardize good affordable housing developments by causing the project not to “pencil out.” And that has potential consequences for the broader economy. On average, 100 single family homes built equates to 284 fulltime local jobs. The ripple effect of these jobs and the construction activity is felt by our state’s economy, as well as by local economies. Government revenues are up when construction is strong; and they are down when construction is weak.

Affordable housing construction is a big part of the overall picture. In Greene County, one affordable housing single family project (Fulbright Springs) constituted 14% of all the single-family new homes permitted in 2009.

Mandating that all of these units should be built using Universal Design would undermine the whole reason the state assists in getting these affordable units built in the first place. The increased cost would lead to one of only three possible outcomes: 1) these affordable housing units wouldn't get built; 2) they get built, but go unsold or unrented; or 3) the state steps in to increase its subsidy for affordable housing.

None of these are attractive options when there are much more productive ways of ensuring that adequate Universal Design housing is available, even in affordable housing developments.

Universal Design can be incorporated more efficiently through incentives than through mandates. For example, projects using Universal Design could be given priority in the selection process. Or, builders who set aside a portion of their development as Universally Designed units could be rewarded with greater densities or more total units. These incentives would increase the availability of Universal Design projects without undermining the fundamental purpose of affordable housing: that it be affordable. They also would not require additional subsidy dollars the state doesn’t have, just to make up for what would be its own self-inflicted affordability gap.

While incentives like these or others would be helpful; I am not certain that even they are really necessary. The industry already is enthusiastically and voluntarily responding to what it believes is a growing and important niche within residential construction in Universal Design. This might be one of those instances where government shouldn’t do for the people what the people seem prepared to do better for themselves.

Following my testimony, I was encouraged to receive positive feedback from the legislators who sit on the committee that is hearing the bill. I believe the HBA's case was well-received and had an important positive effect on the proceedings. As often is the case, the HBA brought the only testimony against the bill in its current form (many more testified in favor). If not for the work of the HBA, legislators would have heard no counterpoint to this proposal. And that could lead to some very bad decisions now and in the future.

And, lest you think this is only an isolated piece of legislation that has little to do with your business, consider this: while this particular bill applies only to subsidized housing, advocates at the hearing made no secret of their ultimate goal of requiring ALL new housing to be built to Universal Design standards. They see this bill only as the first step toward the ultimate goal of "universally-mandated" Universal Design.

So, the HBA will continue to work toward cooler heads prevailing. Our goal remains common-sense solutions that won't needlessly damage the market for new homes. At its core, that is the purpose of an association like ours: strength in numbers. The HBA's testimony is given weight only because of your membership in it. And, in turn, as a member, you receive benefit from the successful advocacy of the association. Put even better by Benjamin Franklin in the early days of the American Revolution: "We must hang together or we shall surely hang separately!"

Matt Morrow
Chief Executive Officer
Home Builders Association of Greater Springfield

CEO Blog: Live from Las Vegas

2010-01-18T01:53:00.000-06:00

It is Sunday evening and I'm in my deeply-discounted Las Vegas hotel room (Imperial Palace, if you must know) working to recap the highlights of my first day at the 2010 National Association of Home Bulders' International Builders Show (IBS).

If you never have been to an International Builders Show, you certainly should at some point give it a try. There is no bigger spectacle in our industry than this. The show always features state of the art displays, interactive exhibits, and the latest innovative products. But what some people miss (for all the spectacle of the show) is the pre-show education. Builders and other HBA members spent Sunday gaining continueing education credits and necessary education as they pursue designations. Others serve on NAHB committees and have spent most of today working on your behalf on may critical issues.

I spent most of today working with other HBA executives to identify ways we can deliver better value for the membership dollar to HBA members. It is clear that the realities facing associations is and will be different in the future than it was in the past. Programs and events that always have "worked" may seem less effective than they once were. The value proposition for HBA members is changing, and it is up to association executives, staff and volunteer leadership to identify where their HBAs can be of greatest value to their members and begin re-defining the very role of an association accordingly.

Practically, that can mean a more comprehensive incorporation of social media (twitter, facebook, linkedin, etc.). It also can mean an increased focus on education and designations. Perhaps it means delivering critically important, exclusive data and analysis of the housing market and the greatest opportunities for future success.

These and others all are in play as we consider what the future holds. It makes little difference what was important to our members in years past. It doesn't even make much difference what they find valuable today. What matters most is what members will expect an/or demand from their associations in the future. Those are the kinds of issues we are wrestling with in these pre-show education programs. I'm learning a great deal and am optimistic that what I am gaining here will directly provide value to our HBA members in the greater Springfield area.

Today I posted frequent twitter updates as I attended these seminars. I will continue doing that all week. I'm going to work to incorporate some photos with the tweets starting Monday. To follow me on twitter, click here.

Matt Morrow
Chief Executive Officer
HBA of Greater Springfield

May I Tweet You from IBS?

2010-01-10T20:38:00.002-06:00

If you haven't yet caught onto the Twitter bandwagon (or if you have but have yet to discover the new world of membership value provided through the HBA's social media connections), a grand opportunity is just around the corner.

The National Association of Home Builders annual International Builders Show International Builders' Show® (IBS) officially opens January 19, but pre-show education begins as early as this week (Friday, January 15). IBS is the largest annual building industry tradeshow in the country. It's THE place to see and discuss the hottest products on the market and network with your friends and allies. On top of that, IBS offers more than 175 education sessions taught by industry experts.

To plan your visit to the International Builders' Show, or just to see what all the fuss is about, visit buildersshow.com. Whether or not you plan to be there for all or part of IBS this year, you can keep up with much of what is going on there by following HBA President Rusty MacLachlan or by following me on twitter. Rusty and I will be in attendance and we will tweet our little hearts out about the very best of what we see, hear and learn. If we can make our respective blackberry technologies work (Rusty uses twitterberry, while I prefer the ubertwitter app), we might just go all multimedia on you with dazzling cameraphone pictures and video of some of the coolest stuff.

But you won't get all that goodness unless you get signed up for twitter now, set up an account, and sign up to follow us (and probably a bunch of other folks you will find once you are there) on twitter. Unfamiliar with twitter? I wrote a blog a few months ago about why I think twitter is such a perfect fit for the HBA, complete with a little tutorial on how to get started. To quickly read that primer (and watch a cool little video tutorial), click here.

So, lets get going. Many already are following us. Rusty has 71 followers and I have 198, and we both use our twitter accounts nearly exclusively for HBA and home building/remodeling industry content, so we won't cover you in useless drivel (now THAT'S something few twitter accounts dare to promise!). Just navigate to twitter.com to set up a free account. Then find and follow those of us who tweet on behalf of the HBA. Here are our most HBA-focused twitter accounts (many other HBA members also tweet the goings on of the HBA and within the industry, and for that we thank you... they also are well worth following on twitter... you know who you are!)

Follow HBA of Greater Springfield

Follow HBA CEO Matt Morrow

Follow HBA President Rusty MacLachlan

Follow Public Affairs w/Jennifer McClure

CEO Blog: Welcome to the NEW HBA Housing News Weekly E-Newsletter!

2009-10-11T22:29:00.000-05:00

In September of 1908, Henry Ford released the first production Model-T automobile. Previous to the release of this car, horse-drawn carriage was the preferred mode of transportation. From 1908 into the late 1920’s, carriage and buggy companies worked furiously to improve their product in order to compete with the expanding automobile industry. Luxury seating and amenities were added, aerodynamics were improved and even a better buggy whip (used to whip the horses) was created. One by one, despite their best efforts and in spite of many legitimate improvements, buggy and carriage companies found themselves shutting their doors. By the early 1930s, nearly all of them were out of business. The few that remained were shadows of their former selves, doing only a fraction of the business they had enjoyed years earlier.

Our HBA Housing News monthly magazine is the best product of its kind in the U.S. In August the National Association of Home Builders Executive Officers Council gave Housing News the 2008 Association Excellence Award in the category of “Best Communication to Members – Magazines Published.” But the important question isn’t whether we have the best product of its kind. The question is whether the “kind” remains the best way to communicate with HBA members in 2009 and beyond.

Consider the simple fact that any significant news published in Housing News has long since been released on the HBA website (or elsewhere) before this printed document shows up in your mailbox. HBA members who advertise in Housing News rightly expect greater accountability and less competitive clutter than may have been acceptable in years past. And they expect to pay for actual return-on-investment value – not ever-increasing printing and postage costs. These expectations are very reasonable given how readily they are met in most places advertising dollars are spent.

Still, there is something to be said for holding a well-crafted, visually interesting printed product in your hand. HBA members want their news content delivered in real-time and digitally accessible, but they also want something that will look good on a coffee table.

In an effort to increase value, accountability and service to HBA members, the October issue of Housing News (which arrived last week in mailboxes and can be accessed online by clicking here) is the last monthly Housing News magazine the HBA will publish. The HBA board of directors has voted to replace this product with a combination of two new products: Housing News Weekly e-newsletter and the Housing News Quarterly printed version.

The goal is to provide HBA members and advertisers with the best of both worlds. The weekly e-newsletter (which will arrive in the e-mail inbox of every HBA member beginning Monday morning, October 12) will provide more hard-hitting industry-specific news, real-time content, greater advertising accountability, measurable return on investment, less ad clutter, and greater frequency. The quarterly mailer will be a gorgeous product that really puts our association and its members’ best foot forward. It will tell our most compelling stories in a visually satisfying medium. And it will provide limited advertising and advertorial opportunities for those members who benefit more from the printed and mailed product.

When the marketplace is transitioning to the automobile, it makes little sense to double down on manufacturing buggy whips. This transition is one way your HBA is on the leading edge of association growth and development. I am eager for the HBA to serve you better with these and other new products as we all work to position ourselves for the exciting new opportunities that lie ahead.

Matt Morrow

Chief Executive Officer

HBA of Greater Springfield

CEO Blog: HBA Wins Six National Awards

2009-08-16T15:46:00.004-05:00

You know it has been a full week when you sit down to blog and can’t remember what day it is. Tonight, on my flight home, I’m sorting through what has been a whirlwind week at the National Association of Home Builders’ annual Executive Officers Council Seminar. At the annual event (held this year in Louisville, KY), HBA Executive Officers and staff from across the country receive outstanding education and professional development programs, networking opportunities with fellow HBA executives, and behind-the-scenes peeks at new technology and services that can help local associations serve their members better and more efficiently.

I could write a lengthy column just on all the HBA improvements that Operations Manager Charlyce Ruth and I have placed on our to do lists as we return from Louisville. But you will see these as they materialize in the months ahead anyway – and I promise that, as members, you will benefit significantly from each of them. Stay tuned for more on that later.

But for the time being, may I take a few moments to play the role of chief HBA cheerleader? This event also is where the annual NAHB Association Excellence Awards are announced. A variety of categories of Association Awards recognize outstanding work by HBAs of varying sizes from across the country. This year, the HBA of Greater Springfield received top honors in six categories.

That’s more AEA awards than our association has received in any previous year. It also is more association awards than any HBA – of any size – received this year. Briefly, here are the six awards your HBA received at this year’s ceremonies:

Best Service Delivered to Members: Housing Market Research Project (Polling and focus groups on green building & general housing market)

Best Communication to Members, Magazines Published: Housing News monthly membership magazine

Best Communication to Members, Update Publication: HBA Daily News Electronic Newsfeed (Subscribe)

Best Political Action Program Administered: Good Government Gameplan for Springfield City Council

Best Specialty Targeted Fundraising Program: HBA Charitable Foundation Auction & Go-Kart Races

Best Source of Non-Dues Revenue (under $50,000): Green Building Product Showcase Night (Coming up August 18)

Of course, receiving national recognition for our association’s work is gratifying and humbling. But it also serves to underscore what most of us already suspected: we live and work someplace special. The members of the HBA of Greater Springfield are remarkable people who do remarkable things, as if they were routine. Our HBA staff is hardworking and committed to serving those remarkable members at the highest possible level. And those who make up our volunteer leadership (board of directors, committees, councils, etc.) are people of extraordinary vision, purpose, and resolve. They are leaders who - even amid the unprecedented challenges facing our industry – consistently insist on excellence in everything they touch.

That’s a pretty good combination. So good, in fact, that others recognize something special about it – and they don’t have the privilege of living with it daily the way we do. In a word, our HBA (and our local industry) is special. What an honor it is - for me and for our entire HBA staff - to work with and for the extraordinary members and volunteer leadership of the HBA of Greater Springfield.

- Matt Morrow, CEO

HBA of Greater Springfield, Missouri

CEO Blog: Are We There Yet?

2009-07-31T08:49:00.010-05:00

My wife Rachael and I recently drove to Chicago with our two young children. Being in the car that long brings a few repeat questions. Far and away, the question of greatest frequency was: “Are we there yet?” By my count the question was asked about 25,000 times on the trip (as if they somehow might miss our arrival at our destination).

Of course, many who make their living in residential construction and housing are asking similar questions, and some have been asking for a long time: Are we there yet? How much longer? Have we hit bottom? When does the recovery begin?

While nobody seems to think our current economic condition is due for a whiplash-inducing immediate and vibrant rebound, we are beginning to see encouraging signs.

Nationwide, housing starts and permits posted substantial gains in June. The U.S. Commerce Department reported a 3.6 percent gain in overall housing starts to a seasonally adjusted annual rate of 582,000 units and an 8.7 percent gain in permit issuance to 563,000 units.

Locally, one of our most telling barometers is the number of building permits issued in Greene county (the largest permitting jurisdiction in the region). One comparison I watch closely is how our most recent monthly building permit number compares to the number of permits issued in the same month a year earlier. That comparison hadn’t looked good in a long time. In fact, through April 2009, we had experienced 22 consecutive months of decline by that measure. Then, in May, Greene county issued more permits than it had in May 2008. Then the same happened in June. After 22 consecutive months of decline locally, we experienced two consecutive “up” months.

These are encouraging signs. But we are far from out of the woods. Challenging times lie ahead. That’s why now may be the very best time to prepare yourself and your business for the coming recovery. Consider just a couple of upcoming opportunities the HBA of Greater Springfield is offering to equip you.

Builder Breakfast

HBA leadership recently met with about a dozen area lenders to try to get our arms around the current credit environment and how it is affecting (and will affect) our members’ ability to shift their businesses back into a higher gear, once the recovery is underway. It was an enlightening conversation. Every builder owes it to himself/herself to get up to speed on this topic. The rules (both written and unwritten) are not the same as they were the last time many builders built their last house. For a quick primer on the content of the meeting, check out President Rusty MacLachlan’s blog.

On September 18, at the HBA’s quarterly Builder Breakfast, this issue will be the topic of a panel discussion/roundtable. The breakfast is no charge for HBA builders, remodelers & developers and it will be a valuable investment of time. Please join us (RSVP with a quick e-mail to Kay at the HBA office).

Get Certified & Get Green!

In September - for the first time in our 55-year history - the HBA of Greater Springfield will host a National Association of Home Builders University of Housing designation program locally. Members can earn their Certified Green Professional designation in Springfield in one three-day bundle on September 9, 10, and 11. Normally, to complete the education necessary to obtain this designation, a local HBA member would have to travel all over the country at considerable expense and inconvenience.

Not surprisingly, response to the designation courses has been very strong already, and we are anticipating a full house. If you ever have considered pursuing an NAHB professional designation, there is no better way to start than with the CGP. It is the hottest, fastest growing designation NAHB offers. It can be completed in a short timeframe. And courses you take for the CGP also can count toward other designations (Certified Graduate Remodeler, Graduate Master Builder, etc.). More information on this can be found by clicking here. You can also reserve your spot now by contacting education coordinator Carrie Smith in the HBA office

One way or another, recovery is coming. Will you be ready? Let the HBA help you prepare!

Blogging So You Don't Have To...

Matt Morrow, CEO

HBA of Greater Springfield

Follow Matt Morrow on twitter

Why Twitter sooooo fits the HBA - and you

2009-04-03T15:00:00.003-05:00

Are you on Twitter? If so, waste no time - skip right to the end of this blog post and start following us (I know that sounds uncomfortably like stalking if you aren't familiar with Twitter... keep reading)! If not, allow me to run through a little background on this Twitter craze.

Like a lot of people, I've been hearing a lot about Twitter lately. I was especially intrigued to learn that it apparently had been a very effective tool for political campaigns in the most recent election cycle (most effectively utilized by Barack Obama in his successful presidential campaign).

But, really, I knew only two things about Twitter: 1) Twitter messages are required to be brief, and 2) they can be delivered to and from mobile phones (as well as online). Knowing only those two characteristics of Twitter made me believe it had potential value for our HBA membership (since we like to get right to the point, and we live and die by our cell phones). I wanted to learn what more was involved in Twitter. Turns out there isn't much more involved in it (other than the fact that it is 100% FREE - which is very nice). It is a wonderfully simple and useful tool for quick and convenient mass communication.

Twitter is a social networking online program not entirely unlike Facebook or Myspace. The biggest difference is that Twitter consists of brief messages (limited to 140 characters - short enough for cell phone text messaging) posted online, or to and from your mobile phone. People sign up to follow the "tweets" of other people. Check in on the people you follow either on your computer or by having their "tweets" directed to your mobile phone or other wireless device. Here is a youtube video (less than three minutes) entitled "Twitter in Plain English" that helps with the basics.

HBA President Rusty MacLachlan is on Twitter (Follow him here)

I'm on Twitter (Follow me here)

HBA Public Affairs Director Jennifer McClure is on Twitter (Follow her here)

If you are reading this on Springfieldhba.com, you might have noticed a "Twit This" button on several pages within the site. If you are a Twitter user, and you see something you find interesting on SpringfieldHBA.com, just click the "TWit this" button and you can post a link on your Twitter page to that page in SpringfieldHBA.com. If you like it, why not share it? "Twit this" allows you to share the good stuff with all the people who are following you on Twitter.

So, why not give it a try? Just as an HBA member, the uses can have great value. Rusty, Jennifer and I recently "tweeted" hot news updates live from our recent Construction Forecast event with the Zanola Company. And, this Tuesday I'll Twitter local election returns as they are released each step of the way in real time.

So what are you waiting for? Why not give Twitter a try right now?

Matt Morrow

Chief Executive Officer

HBA of Greater Springfield

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HBA President Rusty MacLachlan is on Twitter (Follow him here)

I'm on Twitter (Follow me here)

HBA Public Affairs Director Jennifer McClure is on Twitter (Follow her here)

Raising the Ceiling, and the Floor

2009-03-27T16:47:00.003-05:00

I recently was invited to speak to the monthly lunch meeting of the local chapter of the National Association of Professional Mortgage Women about the current and future state of the local housing economy. After my remarks, I was asked an excellent question. The question was prefaced this way:

Given the current slowdown, many of the pseudo-professionals (and non-professionals) are no longer in business. Those who are still builders today are the true professionals – like HBA members. The result is that the overall quality of professionalism in home building may never have been higher than it is right now.

Knowing the professionalism of our members, and their resilience through this downturn, I couldn’t agree more.

The question: How can we ensure that our current high level of professionalism in home building is maintained once the housing economy is surging again, and the less professional practitioners want to return?

I’ve spent enough time listening to the “setting the table” vision of HBA leaders like President Rusty MacLachlan and Government Affairs Chairman Matt Bailey to know how to answer that question. In fact, it is right in the HBA’s wheelhouse.

Every member of the HBA of Greater Springfield is required (among other things) to carry workers compensation and general liability insurance. We have observed that, in general, those who carry these forms of insurance tend to be the more professional members of the industry. Since workers compensation insurance is required by Missouri law and general liability insurance is basic good business (and protects consumers), you wouldn’t think these membership standards would be particularly controversial. Think again.

While I am told that most fulltime builders carry GL insurance, our fights generally come over our workers comp requirement. It can be very expensive, and many in the industry operate under the mistaken assumption that they are exempt from the requirement. They usually are familiar with the law’s requirement that any business in the construction industry must carry workers compensation insurance if that business has one or more employee. Since they utilize subcontractors rather than actual W-2 employees, they reason they are not required to carry the insurance.

The problem with that reasoning is that Missouri’s workers compensation law goes on to define “employee” to include: W-2 employees, subcontractors, volunteers, or family members. So, unless you drive every nail and lay every brick personally, you are required to carry workers compensation insurance in Missouri.

Since builders who operate without workers compensation insurance are violating state law, why would any city or county building regulations department issue a building permit to them? They shouldn’t. Yet most of them do. Cities and counties should instead follow the example of the City of Branson and a handful of other jurisdictions that require current proof of workers compensation insurance to pull a building permit, and to complete inspections and receive a certificate of occupancy.

The HBA of Greater Springfield is advocating for just such changes in city and county permitting departments throughout our ten-county service territory. Matt Bailey’s Government Affairs Committee has set the goal of establishing proof-of-insurance requirements in more than one of these jurisdictions by the end of 2009. To that end, we have had productive meetings with the Missouri Attorney General’s staff about co-hosting education programs about workers compensation law for local and county building officials and elected officials, and working together to encourage progress on this issue at the local level.

We strongly believe that now is the time to pursue more aggressive enforcement of state law in this regard. Because of the correlation between those who carry the proper insurance and industry professionalism, a requirement at permitting to show proof of insurance would help raise the “floor” in our industry.

But we shouldn’t be content just raising the “floor.” We also should raise the “ceiling” of professionalism by continuing to elevate our own HBA standards of professionalism. That’s why our president has appointed Brett Godfrey as the HBA’s Education Czar. Brett has been charged with offering unprecedented professional education opportunities and access to HBA members and, over time, creating a culture of education and professionalism among all HBA members. A comprehensive continuing education program for HBA members already is well underway. As you learn more about the opportunities available, I think you will agree that our “ceiling” for professionalism has never been higher.

This is what our president means when he talks about “setting the table” for future success. Based on the important steps we are taking now to create a level playing field, professional standards, and continuing education, I am excited about what the future holds for HBA members and our industry.

I'll be Twittering Today live from the Zanola presentation

2009-03-13T00:05:00.005-05:00

Today is the HBA of Greater Springfield's big presentation of the latest area construction forecast and market analysis, courtesy of MarketGraphics and Zanola company. I am hopeful that lots of HBA members will be able to attend. If you'd like more information on the event, you can read all about it at this link, and I hope to see you at 10:30am at the Library Center in Springfield.

Meanwhile, if you are on Twitter, you can follow my updates live from the Zanola presentation later this morning (even if you can't make it in person). I'll be "Twittering" directly from the event. If you aren't yet on Twitter, it's a simple (and free) process to sign up. All you have to do is sign up to follow me on Twitter, and/or follow our HBA President Rusty MacLachlan on Twitter, and follow the directions as they are given. I'll share more about Twitter later on this blog (I think there is all kinds of potential in this for HBA members), but for now I just wanted to be sure you have this opportunity to follow the live updates from this morning's construction forecast event.

And, since by the afternoon you already will be following my "tweets," I'd also like to invite you to follow as I Twitter live from Senator Kit Bond's business roundtable discussion (starting at 3:30pm today at the Springfield Area Chamber of Commerce). Among those businesspersons participating in the roundtable will be HBA President and home builder Rusty MacLachlan and HBA board member Lee Beaman (Beaman Electric). I'll be sure and "tweet" all the highlights from there, too!

'Home-Grown' vs. Growing Homes (Click Here)

2009-03-03T08:46:00.004-06:00

Back in the 1970s, my mother annually planted a large garden in our back yard. I was involuntarily drafted into service to help tend it. I didn’t much care for the restrictions it placed on my whiffle ball field. On the other hand, I developed an affinity for home-grown tomatoes that I retain to this day.

Times were tough. While I was not privy to the family finances in those days, I understand that garden saved us a few dollars in our monthly grocery budgets over the years. As an adult, I have never planted my own backyard garden. Given the economic challenges of this era, I admit I am considering it.

So, when an elected or other high-ranking official in our region suggests that the day is coming when people living here will have to “grow our own food,” I am taken back to those nostalgic days of my childhood. Then I listen further. The suggestion is not simply that more people will tend backyard gardens (which, incidentally, I would favor - anything that increases the supply of home-grown tomatoes is fine with me). No, these officials go much further. They posit that those of us who live in the most urbanized county in southwest Missouri must soon become self-sufficient when it comes to our food supply.

On its face, this seems to me like a quaint idea that is charming, but a little silly. Why would we choose the urban core of the region as the optimal location for such large amounts of agricultural activity (even if one day we find ourselves scrambling to “grow our own food”)? Would it really be that big of a deal if we had to “import” agricultural products from such far-off places as Aurora, Buffalo, Ava, or any number of active agricultural communities within a half-hour drive from Springfield?

Still, while the idea seems a little far-fetched to me, I am generally content to live and let live. In the end, what difference does it make if some folks are a little more “out there” than I am?

Then, over the course of the last couple of years, I began to see actual policy proposals come out of government offices that have used as their rationale this pretext of “growing our own food.” Such proposals have included:

Prescriptive land use proposals;

Mandated or non-market-based incentives for so-called “farmland preservation” (“so-called” because these preservation proposals generally are not for land that is actively farmed, but rather for land that simply is vacant);

Density and mass transit proposals that seem out of step with our population requirements and culture.

If such unconventional notions are going to guide policy decisions – and those policy decisions directly impact the housing industry and future home buyers’ affordability – we are forced to take a closer look. At the very least such assertions should require some data or analysis before they are accepted as fact.

So, since it appears we must, let’s talk for a moment about meat. While there are exceptions, we are not – by and large – a culture of vegetarians and vegans. In the Ozarks, we like our meats. Even if we didn’t, the rock-filled clay deposits found throughout Greene County don’t exactly promote efficient row crop agriculture – not to mention banana or coconut trees. So, for the time being, let’s hypothetically put every resident of Greene County on the Atkins diet. Let us consider the amount of meat production alone it would take in Greene county just to feed the residents.

Based on conservative population and consumption estimates, Greene county would need to produce, butcher and process approximately 24,000 feeder calves, 80,000 pigs, 240,391 turkeys, and 6 million chickens per year, just to feed our current population. To give an idea of just how massive a shift that is, let’s look just at the smallest portion: feeder calves.

Given gestation periods and the fact that calves are born one at a time, producing 24,000 feeder calves means that each of those calves has its own distinct mommy. Assuming for a moment that no bulls are part of the equation, that means at least 48,000 head of cattle would be needed in Greene County per year. According to the most recent data I could find, the largest cattle producing county in Missouri is Texas County at 47,500 head. Texas county has nearly twice the land mass of Greene County. The largest city in Texas county has a population of 2,500. I don’t think we could fit 48,000 cattle in Greene county with a shoehorn. Even if we could, where would we put the six million chickens?

And what about processing? If we are really going to feed our own population, we can’t just raise the livestock, we have to butcher and process it here, too. If an ethanol plant in Webster county created a ruckus, how do you think a plant that annually processes six million chickens and 240,000 turkeys will go over? How about huge commercial hog farms?

This isn’t intended to qualify as a doctoral thesis--my data isn’t complete or perfect, but it all trends in the same direction. Frankly, it is more than I’ve ever heard from futurists who assert the imminent need to grow our own food, as if it is plausible.

So, what is the point of all this? If you want to start a backyard garden, go for it. If you want to encourage others to do the same, more power to you. If you really believe that Greene county ultimately must produce enough food to feed our local population, it is time to expand this conversation to include actual data, other regional governments and area food production, processing and distribution professionals. I would think that our restaurants and grocery chains among others would have some data and input on this issue but as yet I haven’t seen any of these folks invited to the discussions where these assertions have been made.

To suggest that privately owned prime development land should be taken off the table based on a totally unproven premise is irresponsible. Policy decisions should be guided by better sense. I fear the real goal of this assertion may be simply to block or significantly deter further housing development.

And here is the irony. While it is wholly unrealistic to think we could ever provide adequate food supply locally to feed our entire population, housing that same growing population is a very real and immediate local need. Importing housing is not an option. We must build it here, in the process creating jobs that can never be outsourced and generating much needed sales tax plus other revenue. Perhaps area futurists could focus on that for the time being.

Count Your Blessings this Christmas

2008-12-22T17:22:00.000-06:00

What a special time of the year this is. My hope and prayer for you and your family is for a joyful 2008 Holiday Season. For some reason, now even more than at Thanksgiving, Christmas always gives me pause to reflect on the blessings I've been granted. And, this blog affords me the perfect opportunity to share a few of the blessings that come with working for the HBA of Greater Springfield, and with all of you.

I’m thankful we live where we live.

Attending conferences and meetings in other parts of the country - with members and executives from other Home Builders Associations – brings into sharp focus the advantages we have in this market.

Yes, this is a painful time in our history. And there is not one of our members who would not readily trade this difficult patch for the “good ole days” of just a few years ago. But if misery loves company, those in the construction industry are enjoying quite a fellowship right now. And there is not another market or HBA in the country that wouldn’t readily trade places with us at this moment.

We have advantages that are protecting us from the utter collapse seen in so many parts of the country. Our local economy still is creating new jobs. Our population is growing. Our cost of living is reasonable. Our economy is diverse (and heavily reliant on the recession-resistant industries of education and health care). And our builders did not make the mistakes that many did elsewhere: when it became clear demand was waning, builders here responsibly slowed their production. That means our inventories do not look like the bloated, multi-year supplies facing many communities.

It has been said before, but it bears repeating: We entered this downturn later than most other markets. Based on the fundamentals of our local economy, we should come out of it sooner than most. And we are unlikely ever to sink as deep as most markets already have.

I’m thankful for our outstanding volunteer leadership.

What an honor and a privilege it has been to work with our board President Kevin Clingan so closely over the last two years. He is an outstanding servant-leader of this HBA. Of his many strengths, perhaps his greatest is his ability to lead by example. If people in the home building industry are uncertain right now – if they are feeling for what to do next – they should look to the way Mr. Clingan runs his own business, and how he has led the HBA of Greater Springfield. A great and valuable education awaits anyone who would observe him.

I am similarly excited about our next president, Rusty MacLachlan. Rusty and I recently attended a Leadership Training Conference conducted by the National Association of Home Builders. During the conference I had the opportunity to see up close what I had observed about Rusty for a number of years: that he is a leader of exceptional vision who has the ability to identify solutions to some of the most challenging problems facing our industry. His leadership skills offer enormous promise at a pivotal time for our HBA and for the industry.

Thankfully, our entire board of directors and other volunteer leadership (committee and council chairs, co-chairs, members, etc.) are extraordinary. While other HBAs are losing members, ours is growing. While other HBAs’ signature events are suffering, our Home Show is selling out of booth space. While other HBAs are borrowing and dipping into their reserves just to pay their light bills, ours continues to be a debt-free organization (with a balanced budget) that is financially solvent with some of the lowest dues of any HBA in the country. These things do not happen by accident. They are the result of years of careful stewardship and strategic planning exercised by our outstanding volunteer leaders.

I’m thankful for the opportunity to serve exceptional members.

I’m very pleased that the HBA of Greater Springfield continues to receive recognition on a national level as a successful and accomplished organization – one that can be - and is - emulated by other HBAs. Because of my job title, from time to time people congratulate me on our HBA’s success. When that happens I always am careful to point out that we are not an exceptional association – we are an association of exceptional members. For nearly eight years it has been my honor to work for you, our exceptional members. I’m excited about the opportunity to work with you to overcome the challenges that lie ahead, and together to achieve even greater successes in the future.

Share Your Biggest Bureacratic Obstacles with the HBA!

2008-11-05T18:42:00.004-06:00

Just about every HBA member has war stories. Some "new" requirement added at the eleventh hour by a city or county staffer that threatens to blow up a whole development? Perhaps differing code interpretations by different inspectors for the same city? Or do you have other pet peeves when dealing with a building regulations or planning and zoning department? Are there certain things that certain cities and/or counties do that only stand in the way of getting a good project off the ground?

Why not share your experiences with your fellow HBA members? Not only is venting good for the soul, but it could turn out to be quite constructive for your business. Using the message board on the members only section of SpringfieldHBA.com, members can now post examples of some of the challenges they are facing in the field (anonymously, if they prefer). Then, when HBA representatives have their regularly scheduled meetings with building and planning and zoning officials, we can raise the issues and try to get some resolution.

Would you like to participate? Just go to SpringfieldHBA.com and log in as a member. Or, if you don't have a member login, simply create one at the site. Once your login is approved, you'll have access to these and other valuable members-only content. But, for those who just can't wait to jump on this message board, I suppose you can just click here. Have fun.

Matt Morrow

HBA Executive Officer

Ozarks Communities: Open for Business

2008-10-30T14:05:00.002-05:00

On Thursday, October 23, two Ozarks-area city governments each made their own overtures to the development community. At separate high profile events, each city had the same message: “we are open for business - ready to help developers build here.”

The city of Republic hosted a bus tour of the community, toting residential and commercial builders and developers all over town to see firsthand the many prime opportunities Republic has to offer. HBA President Kevin Clingan and President-Elect Rusty MacLachlan were aboard the tour, and both were impressed by the city’s progressive attitude toward growth.

The approach Republic has taken in recent years should be instructive to other communities throughout the Ozarks. The city recognized that growth was coming, but Republic city leaders didn’t cower in fear. They didn’t attempt in vain to stop or slow down the coming growth. To the contrary, they recognized that growth and economic development had the potential to offer enormous benefits to their community. All that was necessary was a little planning.

And plan they did. Republic’s approach to sewer trunk line extension may be the most ambitious in the entire region. Initially, some wondered why the city would go to all the expense of building sewer lines where no development had occurred. But it soon became clear the strategy was effective. Those sewer lines were used to guide and accommodate growth as it arrived. Republic city leaders had mapped out precisely how they wanted their city to grow. They used sewer lines as their land use plan, and it has worked remarkably well. Now Republic is poised for its next big boom. Far from hiding from growth, this city is courting it - even in a soft economy.

The other city aggressively pursuing new growth and development is Ozark. On the same night Kevin and Rusty were touring Republic, Steve Hamm and I attended an economic development dinner hosted by the City of Ozark and the Ozark Chamber of Commerce. City Administrator Steve Childers delivered a presentation outlining the growth history of Ozark, as well as opportunities for today and the future.

Childers and other Ozark city leaders were not the least bit coy about their message: they want growth, they want economic development, and (most importantly) they want the city to be a partner - not an obstacle - to builders and developers.

Over the last two years, Ozark city officials have worked hard to improve the city’s damaged reputation with the development community. The reports we receive at the HBA from builder members who build there are that the city has taken on a less bureaucratic, more “customer service” approach. Reputations can be slow to change, but the city took an important step in the right direction with its message on October 23.

The message coming out of Republic and Ozark is refreshing. It is no secret that the HBA has had its share of disagreements with these cities in the past. But in 2008, these two cities seem to understand what some others in the area still haven’t yet discovered: they need us as much as we need them.

It seems every municipality in America is suffering revenue shortfalls. The solution is almost too obvious: growth and development are the lifeline cities so desperately need in these difficult economic times. Most cities want commercial (especially retail) development because of the sales tax revenues. But local governments would be wise to be just as welcoming of residential growth. New homes house the customers that will spend dollars in their communities. The construction of homes overwhelmingly relies on locally-sold building materials – which means substantial sales tax revenues. Growth in residential construction should be an essential part of any progressive city’s success plan.

Cities like Ozark and Republic seem to get that. Cities and counties across the region would do well to follow the lead of these ambitious cities.

Mandated Residential Fire Sprinklers: A Serious Blow to Housing Affordability & Safety

2008-09-23T16:51:00.000-05:00

On the very weekend the Federal Government proposed an historic bailout plan to rescue the financial markets (and ultimately to get people back into home-buying mode), voting members of the International Code Council adopted an unprecedented frontal assault on housing affordability.

In Minneapolis, Minnesota on September 21, final votes were cast for the inclusion of mandatory residential fire sprinklers in the 2009 International Residential Code – the code utilized by most communities that recognize a building code. A two-thirds vote was required to adopt the new mandate, but the deck was heavily stacked against affordability. Fire sprinkler manufacturers stand to gain billions of dollars when their product is required by code, and they were willing to spend millions to get there - effectively mobilizing hundreds of eligible “yes” voters and flying them from all over the country to vote for the change.

The sudden — and controversial — arrival of 900 fire officials eligible to vote at the International Code Council's final action hearings swelled the number of sprinkler proponents, and the measure was approved by a vote of 1,283 to 470. About 1,200 voting devices were turned in immediately after the residential fire sprinkler mandate was approved; suggesting that most of the proponents left immediately after the vote was taken.

To be a voting member of the International Code Council, you have to be a governmental member of ICC. City and county building and fire officials were eligible to vote, and they were lobbied effectively. It seems the only people not allowed a vote are those who are governed by the code. Builders and others in the industry are not given the right to vote at this event. The National Association of Home Builders lobbies. Members try to get on key committees. But we are allowed no vote.

There’s more. The ICC is a private entity. It is not answerable to any government, to taxpayers, or, well, anyone. It is a private organization that develops the code that thousands of municipalities and counties nationwide dutifully adopt (usually with no substantial local scrutiny or discussion).

Enough about process. This is terrible public policy, regardless of the fact that it now is included in the IRC, or how it got there. Local building departments, city councils, and county commissions should exercise reasonable and wise judgment and reject it when they get the opportunity. Among the best reasons to amend the IRC to strike the new sprinkler provision:

- Housing affordability has reached its tipping point. In our area, the median earner can no longer afford the median priced new home. This mandate would push home prices another $5,000 to $7,000 out of their reach.

- The mandate is most punitive against those who can least afford it. Adding a few thousand dollars to the price of a million dollar home may be a nuisance, but it is unlikely to prevent the home from being built or bought. But what about a family’s first starter home? What about workforce housing? Habitat for Humanity? A $1,000 increase to the price of a home drives 402 Ozarks families out of the ability to buy the home. This mandate will prohibit thousands more from achieving the American Dream of Homeownership.

- The technology is unreliable. Most home owners are unprepared to perform the maintenance required to ensure that the sprinklers remain operational. Pipes installed in attics freeze in colder climates. Sprinklers can be discharged accidentally, with damaging results. In areas served by wells or where water is scarce, the availability of an adequate water supply presents additional problems.

- The new mandate won’t save lives. Fire deaths happen in old homes, not new ones. Basic modern building codes, smoke alarm requirements and other common sense and affordable modern residential fire protection have made new homes the safest in the housing stock.

- The new mandate forces people to live in older, more dangerous housing stock – where their risk of fire death is greater. If people can’t afford a new home, where will they live? Older homes. Homes built before the modern residential fire protection are deathtraps in a fire. The best solution for saving lives is to make new housing as affordable as possible, getting families into safer, new homes.

- The new mandate will lead to urban sprawl, and the “donut effect” in communities. Good builders have traditionally been happy to build in communities with reasonable building codes. But there are plenty of buildable areas in the Ozarks that are not under the IRC or any building code. It will be difficult to resist the temptation to build the same home a little further away for thousands of dollars less. And it will be difficult for buyers to resist the temptation to save those thousands when the only difference in the home is a costly amenity they wouldn’t have chosen if they’d been given the option.

These are facts. Don’t take my word for it. The data supports these conclusions. A full analysis of the data was conducted by NAHB’s Elliot Eisenberg and can be found here:

http://www.nahb.org/generic.aspx?sectionID=734&genericContentID=34465&channelID=311

As undeniable as these facts are, they are not the only facts now in play. The most ominous one is this: Fire sprinkler mandates will be part of the 2009 International Residential Code and will be required in all one- and two-family homes and townhouses that build to the code as of Jan. 1, 2011. Let’s hope our local officials exercise better judgment in amending the code, than the ICC exercised in drafting and approving it.

Multifamily Housing 'Matrix' Needs a Re-Boot

2008-08-28T10:54:00.001-05:00

A year ago, Springfield adopted a new system for evaluating multifamily housing rezoning requests. An intricate point system dubbed the multifamily “matrix” has been in use ever since.

I served along with other members of the community on the task force that drew up the matrix. Throughout the processed I was one of several who voiced concern about the potential outcome of utilizing such a system at all. It seemed to me that we were using a sledgehammer to kill an ant. Why not simply adopt a few statements of principle – guidines, if you will – that become the criteria through which staff, planning and zoning officials and council members exercise reasonable judgment? Instead, we opted for a prescriptive point system.

When the matrix was adopted, I outlined (in a column for the September issue of Housing News) my concerns about the policy and some basic benchmarks we should utilize to evaluate it. Here is an excerpt from that column:

“…I hope my fears prove unfounded, but the stakes certainly are high. That’s why the best part of the task force’s recommendation is that we reconvene in a year to evaluate the system and make recommendations for any needed changes. In the meantime, we should watch a few indicators very carefully:

 Number of rezoning applications received: If we receive significantly fewer rezoning applications over the next year than we did in 2005 & 2006, we need to consider that we may have severely harmed our local economy by driving jobs and revenue out of town. We should always use real market data to evaluate, and avoid rash decisions based on a “general feeling” of city council members or anyone else.

 Percentage of rezoning applications approved: If we are rejecting a significantly higher proportion of applications than in years past, we should re-work the matrix.

 Financing. The design guidelines section of this matrix is a New Urbanism style guide, put into policy. New Urbanism is one of many design styles, but this matrix makes it the only one that receives rezoning points. Evidence exists that many lenders view the style as a risky and expensive variation from more conventional and proven development styles, and they often avoid them. Since we are essentially imposing New Urbanism on the multifamily development community (to qualify for higher density you must meet at least 50% of the design guidelines), we should take special note of how lenders respond.

 We must carefully evaluate the point levels during this year, to ensure they are fair to new development.”…”

The multifamily housing task force is now reconvening to re-evaluate the matrix. My hope is that these four criteria will be the ones utilized to determine how the matrix should be changed (or if it should be retained at all). Arguably, the matrix (at least thus far) has failed on all four benchmarks.

Number of rezoning applications received – I know of developers who have simply decided it isn’t worth trying to navigate the complex maze offered by the Springfield matrix. Surrounding communities require far fewer bureaucratic hoops. To make a good judgment on this point, the task force will need data. City staff should gather the number of rezoning applications (developments, not units) approved and denied over the last year in Greene County, Christian County, Republic, Willard, Nixa, Ozark, Rogersville, etc. to compare. By any objective standard, Springfield should run well ahead of all these jurisdictions. It is more urbanized. It has a higher percentage of renters to owners. Occupancy rates in existing units remain high. There is no reason Springfield shouldn’t outperform all surrounding jurisdictions on the number of multifamily rezoning applications received – unless developers are being pushed away by policies and procedures.

Percentage of rezoning applications approved – This should be simple enough to compare the last 12 months to approval percentages in the past, as well as to current percentages in surrounding communities.

Financing - In the last year, financing for all construction projects has become less flexible. If “New Urbanism” developments were on less-than-certain ground for financing a year ago, there is no reason to believe lending institutions have loosened standards this year to embrace this financially riskier option.

Evaluate the points – Let’s face it, the points are confusing. Nobody (including staff council members) seems able to agree on just how to allocate points. Despite the best efforts of the task force to keep the process objective and clear, the result has been muddled and confusing. If the matrix has created more confusion than simplification, it should be reconsidered.

Local Housing Market Poised to Rebound Sooner than Expected?

2008-08-25T15:35:00.003-05:00

Our friends at the Greater Springfield Board of Realtors last week met with Federal Reserve Vice President Dr. Howard Wall, and the picture he paints for the near future in the greater Springfield market is cautiously optimistic for a nice rebound (and soon).

We all know that nationwide home sales and new construction have been down severely. Locally, our down period began later. And we in the Ozarks are hopeful that our reputation for being insulated from the extremes continues. That would mean we can expect this slowdown in the housing economy not to run as deep, or for as long a period of time, here as it has/will elsewhere.

In the residential construction industry, of course, the first thing that must happen before large numbers of homes can be built again, is for those on the market today to start selling more rapidly. KY3's Cara Restelli reported last week on the possibility that our local housing market may have hit bottom, with a rebound on the way. In case you missed it, you can watch the news story below.

National Honors for Your HBA

2008-08-08T00:07:00.002-05:00

Today was another full day at the Executive Officers Seminar of NAHB in Providence, RI. Education sessions continued and I have pages of important and valuable notes from seminars today on Advanced Association Law and Data Collection & Member Needs Assessments. Charlyce received expert instruction in membership retention and meeting member needs. So much valuable information was shared today that we’ll need some time to sift through it all. Still, it is so useful to get advanced content like this from some of the best experts in their field. I anticipate it will pay off greatly for our members.

Today saw three more Association Excellence Awards for the HBA of Greater Springfield, bringing your HBA’s total national awards to five for the year. You can read about the two we received before today in yesterday’s blog entry. Today, the HBA of Greater Springfield received the honors of:

Best Political Action Program Administered – Ozark Board of Aldermen Elections
Best Workforce Development Plan Implemented – Partnership with OTC on the Construction Readiness Program
Best Specialty Fundraising Program – CBBT Sporting Clays Tournament

For the second year in a row, the HBA of Greater Springfield received more Association Excellence Awards than any other association in our size category. This is a great recognition of the work of our members, committees, and board of directors, as well as the support efforts of the HBA staff. It is a great honor to work with you on these projects, and I’m so proud that your efforts continue to receive recognition on a national stage.

I was surprised to learn tonight that our president, Kevin Clingan (and our board of directors and staff) had nominated me to receive the EOC’s top national award of Executive Officer of the Year. I was even more shocked to actually receive the award at tonight’s AEA Awards Gala. This is a great honor to receive and I am so humbled by it.

One of the great things about my job is that I often get credit for the work of others. Because of this reality, I always want to be cautious not to fall into the trap of believing my own press clippings. I want you to know that I consider this award to be recognition of the great home builders association we all treasure. It is recognition of a uniquely visionary and dynamic board of directors; of a remarkably talented and committed staff; and, most of all, of our truly exceptional members - the caliber of which most associations simply could never imagine the privilege of serving. I have said it before, but I believe it cannot be said enough: I am so grateful to work for you, our HBA members. Thank you so much for allowing me that honor.

Another late night. Signing off from Providence, RI until tomorrow.

- Matt

Wednesday in Providence: Awards & Education

2008-08-06T21:02:00.007-05:00

I’m just getting back in my hotel room after HBA Operations Manager Charlyce Ruth and I went to dinner with Crystal Harrington. Crystal is the Executive Officer at the HBA of Southwest Missouri (Joplin). Part of the value of this event is sharing information with peers, and I always enjoy getting together with Crystal.

Day two of the annual Executive Officers Council Seminar of the National Association of Home Builders was filled with useful information and a couple of honors awarded to the HBA of Greater Springfield.

Charlyce and I split up today so we could cover more educational ground. I attended seminars on increasing the effectiveness of a local PAC, on ‘When to Lead and When to Follow,’ and on anticipating and fulfilling expectations and wishes of members even before they are expressly mentioned.

Charlyce caught an excellent program from association law attorney Jeff Tennenbaum on legal issues pertinent to a 501(c)3. The content should help the HBA Charitable Foundation to excel. She also learned a new method for systematically evaluating association programs for effectiveness and their relevance to members.

The HBA of Greater Springfield also was honored with two Association Excellence Awards. The association’s Fiscal Strategy and Financial Plan for a Shifting Market received the AEA award in the category of Best Association Operations Program. This tool was developed by the budget committee as an accompanying document to the annual budget. It provides a roadmap for accurately forecasting those areas of the budget that are most and least likely to be affected by the shifting housing market. It anticipates which departments will be affected for the better or for the worse, and by how much. It also provides contingency financial plans for use in the event any projections and forecasts ever fall short.

We also received the AEA award for Best Communication to Members – Directories Published for the HBA membership directory. Our members are familiar with this product and have found it quite useful over the years. The most recent version of the award-winning directory is available to HBA members in the showroom of HBA Directory Distribution Sponsor Southern Materials Company.

The rest of the Association Excellence Awards will be announced tomorrow (Thursday), so I hope to have more to report then. In the meantime, please know Charlyce and I are working hard to learn everything we can while we are here to help provide greater value to our members for their membership dollar.

That’s all for now. More tomorrow.

- Matt

Matt and Charlyce Attend EOC Seminar in Providence

2008-08-04T23:28:00.002-05:00

This week marks my first attempt to provide full-scale daily blogging to our members, from a location abroad. HBA Operations Manager Charlyce Ruth and I touched down tonight just before midnight local time in Providence, Rhode Island. Providence is the site of this year’s Executive Officers Council Seminar of the National Association of Home Builders.

This annual event provides opportunities for Executive Officers and senior staff of HBAs from across the country to network, share ideas and successful programs and services for members. We also learn from a wide variety of expert seminar presenters on topics ranging from association legal issues to enhanced member services to political strategies (the list goes on and on). Annually the EOC Seminar provides valuable content that is put to work for the benefit of HBA members. This year’s seminar is focused largely on providing support for HBA members and their businesses in an increasingly challenging housing market. Charlyce and I will be actively seeking any and every membership edge your HBA can offer to help your business survive and even thrive. The EOC seminar is also the venue for the annual Association Excellence Awards where HBA programs, advocacy & services to members are evaluated and measured against those of peer associations from across the country. The HBA of Greater Springfield again is up for several awards this year, and I hope to have good news to report to you as winners are announced throughout the week.

Tomorrow will be a busy day at the EOC Seminar. Charlyce is enrolled in NAHB’s spokesperson training program. This is excellent and very useful training. I have taken the course, as have a number of our board members over the years, and it has helped us carry your association and industry message in the local media and in other public settings. I’ll be busy with my duties as a member of the national EOC board of directors, welcoming new executive officers and serving as a guide/mentor to a couple of first-time attendees the board has assigned to me. Of course, I’ll also have the opportunity to learn in seminars. And the first series of Association Excellence Awards will be announced.

It was nice to get some work done in the office today before catching our 5pm flight, but we are paying for it now - checking into the hotel as the clock strikes midnight. If you need to reach Charlyce or me this week, we will be checking e-mail frequently. Meanwhile, Public Affairs Director Jennifer McClure is riding herd back at the HBA headquarters, along with Kay Wylie and Linda Thieman. They will happily help you with any needs you have this week.

Don’t forget Tuesday is Election Day (I voted absentee last week). Several HBA members and friends will be on the ballot and they need your support. Of special note is HBA builder and board member Terry Ozborn who is in a tight race for Greene County Public Administrator. If you live in Greene County, please pull a republican ballot to vote for him (and tell every friend you can find to do the same). More tomorrow.

- Matt

Housing Crisis: Who's to Blame?

2008-07-24T15:38:00.005-05:00

In a recent article in National Review, Thomas Sowell disects the national housing & credit conundrum astutely. His theme is that, while most analysts point at overzealous builders, lenders, real estate professionals, etc. as the source of our current predicament, we may be overlooking an important, if not THE primary player responsible: government.

Sowell makes the astute observation that it isn't enough simply to observe that housing prices skyrocketed and that sub-prime and other "creative" lending products resulted in a high-risk lending environment that has since largely collapsed. Rather, we should at least consider what circumstances led to those actions in the marketplace, if we are to avoid repeating our mistakes in the future. The original source of the problem, according to Sowell, is state and local governments that "...have in various parts of the country so severely restricted building as to lead to skyrocketing housing prices, which in turn have led many people to resort to 'creative financing' in order to buy these artificially more expensive homes."

There you have it. For years the Home Builders Association has strongly argued that the biggest impedement to housing affordability was not land, labor and materials pricing (though all experienced substantial increases when demand was high). Rather, the fastest growing portion of the cost of a new home is regulatory and governmental costs. There is the problem of large fees. There is the problem of the accumulated effect of much smaller ones. There is the issue of the hidden cost of unnecessary regulation and bureacracy. There are compliance costs. There is the affect that regulatory and governmental costs have on the other cost components of a new home (land, labor, materials).

And lest you think the HBA is the only authority concerned about the impact of regulation and govermental fees on affordability, no less an authority than the U.S. Department of Housing and Urban Development cited regulatory costs and fees as the single largest and fastest growing financial barrier to affordable housing in the U.S. And that was back in 2005. HUD was right. Prophetic, in fact. It was precisely these regulatory costs and fees that drove the price of housing out of reach for the average family. It was these regulatory costs and fees that forced builders to charge more for their homes while making less. And it was these regulatory costs and fees that ultimately drove some lenders to seek out more "creative" ways to help these families realize the American Dream of Homeownership.

Ronald Reagan once said: "Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."

It is an election year. Various parts of the county are in various degrees of crisis with regard to housing and credit. Politicians are quick to point fingers and offer their own proposed solutions. While their ideas for resolving the problems are welcome, we must not forget where the problem originated. At its core, this is not a housing crisis. It is not a credit crisis. This is an affordability crisis that has largely been caused by the insatiable appetites of local, state, and federal governments.

It has been said that government is like a baby: An alimentary canal with a big appetite at one end and no sense of responsibility at the other. If we want to address the current economic condition of the housing market in a lasting way, we must curb that baby's appetite while helping create a new sense of responsibility.

EO Blog: SBJ Economic Impact Awards Spotlight Local Successes

2008-07-18T00:10:00.001-05:00

Tonight my wife, Rachael, and I attended the 9th annual Springfield Business Journal Economic Impact awards banquet. Joe Jenkins served as master of ceremonies, and Great Southern Bank's Brian Fogle gave the keynote remarks. Jim D. Morris received the Lifetime Achievement in Business award, and HBA members were well represented among the honorees in six different categories.Two of the three finalists for top CPA firm were HBA members (BKD & Kirkpatrick, Phillips & Miller), with BKD taking home top honors in the category. Carson-Mitchell received top honors in the Commercial Contractor category, while Olsson Associates was recognized as the top engineering firm. The Charitable Organization of the Year was Victory Mission. Innovator of the Year was the Springfield Greene County Library District.

Finally, in the Entrepreneur of the Year category, HBA member Sheila Collins was a finalist with Springfield Granite Plus, while the top honors in that category went to trial attorney-turned-chocolate mogul Shawn Askinosie for Askinosie Chocolate.

Brian Fogle's keynote remarks were excellent and timely. I appreciated hearing his take on the current economic situation and what the future holds. He acknowledged the economic challenges facing the U.S. and the local economy, but astutely pointed out the economic advantages the greater Springfield area has over so many other regions and communities:

1. Our diverse economy and job base insulates us from the extreme fluctuations of many local economies.

2. Midwest common sense provides a healthy dose of caution when dealing with many of the latest fads that doomed so many local economies (example: we saw fewer sub-prime and other exotic mortgage products issued than many markets experienced).

3. Most businesses here understand that down cycles are, well, cyclical. The true opportunity comes when these businesses can use these down times to position themselves for even greater strength and growth when the economic climate improves.

All in all it was an excellent evening. I was reminded once again of just what a class act the Springfield Business Journal is. I was honored to serve on an advisory focus group panel over the course of the last year to provide feedback and critique of the SBJ to its staff on a monthly basis. The fact that they would even seek out such reader input in an effort to improve their news product says a lot about the Business Journal's commitment to excellence. It is no surprise, then, that SBJ takes that constructive input from readers and uses it to grow and improve in an ongoing way. Dianne Elizabeth and the staff at the Springfield Business Journal have shown a remarkable ability to constantly improve on an already excellent news product - during a time when too many print media have fully lost their way.

Subscribe to All-in-One HBA Daily News E-mail

2008-07-01T20:45:00.011-05:00

By Matt Morrow, HBA Executive Officer

If you've spent any time with me at all in recent weeks, you already know that I'm more than a little stoked about the NEW SpringfieldHBA.com. Honestly, I'm like a kid with a new toy. One of the many new tools I'm looking forward to using is this blog. Often I'll use it to update HBA members on important and timely issues that affect their businesses. And, for awhile, I'll use it to highlight valuable new features of the NEW SpringfieldHBA.com.

Sometimes the HBA has so much going on that it can be hard to keep up. Even our most involved and active members often have a hard time staying up to date on everything. This new website offers unprecedented opportunity to stay informed, with up-to-the-minute information constantly updated for members and the public. But you still have to know where to find it, right? Not anymore. How would you like to receive one daily e-mail with a concise summary of all the SpringfieldHBA.com web content from the last 24 hours?

Well now you can. Just enter your e-mail address in the box below and click the "subscribe" button (or subscribe in your favorite RSS reader if that is your preferred format). Then follow a couple of simple steps to verify your subscription and all the local HBA news will come directly to you. The latest blog posts, podcasts, events & activities, breaking HBA news, advocacy & issues, political action, podcasts, members-only and public content will be consolidated, organized, and delivered to your inbox in time for your arrival at work each morning. So go ahead. Get in the loop. It's the latest featured goodie on the NEW SpringfieldHBA.com, and it is a FREE service available to all HBA members.

Zoning: What's The Point? (June Housing News Column)

2008-06-20T08:24:00.001-05:00

By: Matt Morrow, HBA Executive Officer

Don’t let that headline fool you. Zoning has a specific and needed purpose within growing communities. Increasingly, the challenge is that few agree on just what that purpose should be.

Recent encounters have brought this point into clear focus. Springfield City Council recently had the opportunity to apply its much ballyhooed multifamily matrix system to a proposed apartment housing development, and used it to shelve a good proposal. This is the same matrix system that was nearly a year in the making, while all new multifamily rezoning cases were mothballed by the city. The city’s multifamily moratorium was based on exactly zero objective evidence that the city was “overbuilt” in multifamily units. What a sad and unnecessary stifling of economic growth and development that decision turned out to be. The resulting matrix point system now guides decisions onall rezoning proposals for multifamily use. The jury is still out as to how well it will work.

Meanwhile, I have had the opportunity to meet recently with a wide variety of land use stakeholders as a part of an advisory group convened by the Springfield Area Chamber of Commerce. That group of builders, developers, realtors, farmers, landowners, and environmentalists will make recommendations as Greene County reworks a new land use plan. It has been a constructive collaborative group that I am hopeful county officials can utilize as a resource on future land use issues. Yet even within that reasonable group, there are occasional voices who see planning and zoning as the hammer to regulate into existence their ideal view of a utopian, picture perfect community – as if somehow all the land belongs to them - or the local government - and the people who legally own it are either cooperative squatters or obstinate carpetbaggers.

These two issues have, at their core, the same problem: too many people fundamentally misunderstand the purpose of zoning. The purpose of zoning is not to dictate to every property owner a very narrow set of uses that they are granted the privilege of conducting with their land (although it too often is used that way). This mindset sees zoning as narrow, hard and fast, and permanent – and it misses the whole point.

Zoning is not a dictatorial imposition of permanent land use. It should be a tool that local governments use in those rare and extreme cases where someone’s chosen land use would badly harm the rest of the community. From this perspective, individual property rights are carefully guarded and protected. Land use is allowable for nearly any purpose the property owner has in mind, unless that land use would cause serious harm to the broader community. Even in those rare cases, the property owner is given every opportunity to mitigate that harm so rezoning can be granted.

Individual property rights are serious business. They are the fourth amendment in our Bill of Rights. For any government to restrict individual property rights, it had better be a very serious matter. For instance, reasonable onsite infrastructure improvements are an acceptable part of land development permitting and rezoning cases. Why? Because without them, the affect of changing land use could harm the broader community.

Yet the bar for rezoning denial oftenis set much too low. The “harmful community impact” of a landowner developing his own property may be little more than obstructing the scenic view from the front porch of a dozen or so neighboring residents. While we can sympathize with such inconveniences, they are not worthy of stripping someone else of their individual property rights.

Similarly, the mere fact that a property is “already zoned” for something else should matter little when considering an application for rezoning. Why was it zoned that way? Is that reasoning still relevant? Is the request a reasonable land use? Is it consistent with the community’s comprehensive plan? And most importantly, can it be done without causing major harm to the broader community? These are the relevant questions. By asking questions like these and respecting individual property rights, zoning officials can start seeking ways to approve projects rather than looking for reasons to deny them.